Glossary > Book Advance
💬 Definition of a Book Advance:
A book advance represents the sum of money an author is paid in advance by the publisher to have the necessary funding to finalize their work. The term applies to traditional publishing.
Related questions about book advances:
Why do authors need book advances?
This money allows the writer to finish the book in the agreed time with their publisher. The author will receive part of the sum upon signing the contract, as the payment may be divided into several transfers. The number of transfers depends on the total amount, but there are usually between two and four transfers.
Do you have to pay back a book advance?
The publishing house offers the book advance as a sum against the sales of the respective book (an advance against future royalty earnings.) The estimate is done by the publisher at their own risk. If the selling does not rise to expectations, the author does not return the initial amount.
In many cases, royalties are around 10% of the end price of the book. Authors should expect any additional payment only once the initial advance is earned out. In the eventuality of not reaching the sales goals, the author will not get any further royalties.
How much do authors get for book advances?
For multi-published authors, the amount depends on previous sales levels, their track record, and the genre of their work, but also on the ability of their literary agent to negotiate the terms and the sum. This being considered, many authors can get book advances between $5,000 and $20,000. In some cases, they may even go higher, especially in the case of well-known authors or celebrity projects.
The amount also varies depending on the size of publishing houses. In fact, there is no average when it comes to book advances. The publishing houses analyze a few key metrics when calculating a formula for book advances: the quality of the book, its sales potential, the market for this type of book, editorial interest in the subject (which ranges from none to very high), authorial platform, and previous sales.
How can you calculate the book advance?
There is a reasonable formula for writers to calculate the book advance they will get from their publisher.
(total first-year unit sales) x (retail price) x (royalty rate) = first-year author earnings = advance offered.
The book advance amount may be subject to negotiations between parties. For example, a publisher may offer a higher advance over multiple projects to keep an author exclusive to their imprint.
Do first-time authors get advances?
Traditionally, first-time authors may see a number between $5,000 and $10,000, depending on the publishing house’s size and typical advance formula. Unless there is a bidding war between publishers for a first-time author, which can lead to an increase in the book advance, publishers base their book advance estimates on a realistic prediction of sales.